The Estée Lauder Cos. is buying the Tom Ford brand in a deal that is valued at $2.8 billion.
Tom Ford, the founder and CEO of Tom Ford International, is expected to remain at the company through the end of 2023. Domenico De Sole, chairman of Tom Ford International, will also remain until the end of next year and serve as a consultant.
“This strategic acquisition will unlock new opportunities and fortify our growth plans for Tom Ford Beauty,” said Fabrizio Freda, president and CEO of Estée Lauder, in a statement shared by AP. “It will also further help to propel our momentum in the promising category of luxury beauty for the long-term while reaffirming our commitment to being the leading pure player in global prestige beauty.”
The deal announced also has Ermenegildo Zegna Group and Marcolin S.p.A. entering a long-term licensing agreement for Tom Ford fashion and Tom Ford eyewear, respectively.
It will be in the first half of 2023 when the deal closes pending regulatory approvals.